Stocks set to pull back

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to fall at Wednesday's open, as investors prepared to back off after pushing Wall Street higher over the past few weeks.

At 8:40 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were lower, with declines steepening slightly after a disappointing report on orders for durable goods.

Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks were volatile Tuesday and finished the session mixed as investors weighed a weak reading on consumer sentiment and had trouble finding momentum in the aftermath of the recent rally.

Peter Cardillo, chief market economist for Avalon Partners, said Tuesday's weak Treasury auction "gave the market a bad case of indigestion" that was offset somewhat by bullish traders.

Cardillo said Wednesday trading will be heavily influenced by the economic reports.

Economy: The U.S. Census Bureau reported that durable goods orders fell 2.5% in June, which was much worse than expected.

The durable goods orders, which reflect manufacturing activity, were expected to slip 0.6% for the month of June, according to a Briefing.com consensus, compared to an increase of 1.3% in May.

Investors will also look to the Fed's Beige Book of economic conditions, due out at 2 p.m. ET.

Corporate results: Investors have another batch of results to consider.

Time Warner (TWX, Fortune 500), the largest media company in the world and the parent company of CNNMoney.com, reported that its second-quarter profit from continuing operations slipped to 43 cents per share from 47 cents a year earlier.

Sprint Nextel (S, Fortune 500) a wireless communications provider, reported a diluted loss of 13 cents per share in the second quarter, which was slightly larger than the 12 cent loss per share in the year-ago quarter.

Tech: Microsoft (MSFT, Fortune 500) and Yahoo (YHOO, Fortune 500) have reached a long-awaited 10-year search deal, the companies announced. Microsoft will acquire Yahoo's search technologies to integrate into its existing platforms, while Yahoo will become the exclusive sales force for both companies' search business, according to their joint statement.

World markets: Asian shares dived, with Shanghai stocks losing 5%. Sentiment was better in Europe, where the major indexes rose in midday trading.

Money and oil: The dollar rose against the major international currencies, including the euro, the yen and the British pound. The price of oil dropped $1.22 per barrel, to $66.10.